How China's Anti-NGO Jihad Hits MNCs

It may be a further sign of Chinese hubris, but for what it's worth, persecution of foreign concerns continues apace. New laws are on the drawing board for further controlling and monitoring the activities of non-government organizations. So what, you may say, the Chinese have always maintained tight reins on these potential foreign subversives. Go ask the Catholic Church. Actually, foreign business associations usually stick out of politics, but this time is somewhat different: trade associations may be subject to the same sort of official harassment other organizations operating in China have long experienced such as aid agencies, environmental groups, etc:

Foreign organizations in China, whether or not they are for-profit, tend
to not want to stick their necks out on political issues even if their
interests are at stake out of fear of official retaliation. Nonprofits
in general, especially those working in areas deemed sensitive by the
government such as law and education, are hesitant to take a collective
position out of fear it would alarm Beijing, according to Anthony Spires, a scholar on civil society at Chinese University of Hong Kong who has met with foreign nonprofits to discuss the draft law.

However, the vagueness of new blanket laws is alarming business groups:

The EU Chamber, in a statement, said that its member companies rely
on foreign industry groups, universities and environmental and other
nongovernmental groups for information, research, and corporate social
responsibility activities. The draft law will reduce the ability and
likely willingness of these groups to work in China and that would
“subsequently limit both Chinese and foreign businesses from benefiting
from the value they add,” chamber President Joerg Wuttke said.

Currently,
foreign nonprofit groups have few ways to register legally, causing
some to register as businesses or not registering at all. Foreign
chambers of commerce have been an exception, with special regulations in
place to allow them to register. It’s unclear whether that would change
under the new law, given its vague language, legal experts said. Under
the current proposal, all foreign nonprofits are required to apply for
registration in China or for temporary permits to conduct activities,
including issuing grants in the country. Groups would only be permitted
to operate one office in China unless granted permission by the State
Council, the cabinet.

Chief among the business groups’ concerns
is the authority the law gives China’s police, who are generally
unfamiliar with the work the business groups do, from trade promotion to
lobbying for market access for foreign companies involved in
semiconductors, soybeans and software. The draft law also requires that
nonprofit groups submit regular work plans and reports to authorities
and restricts the numbers of foreign staff, potentially adding to costs
for trade and industry NGOs as well as foreign companies that work with
foreign NGOs in China, business groups say.

Dumb gweilo (foreign devil) capitalists. A China more confident in its abilities was always going to pull the welcome mat sooner or later after gaining knowledge necessary from foreigners to make a buck. Or so they think. If collateral damage from increasing jingoism and paranoia about foreigners hits foreign chambers of commerce, do you really think China gives a #$%^ ?